Florida Judge Ruled on PPACA Case

BenefitMall would like to inform you that U.S. District Judge Roger Vinson of the Northern District of Florida ruled today that the Patient Protection and Affordable Care Act (PPACA) is unconstitutional. The text of the ruling is not available yet, but in a recent court document filed by the lead plaintiff Florida Attorney General Bill McCollum, he argued:

"The Individual Mandate is unprecedented. It compels citizens to engage in commerce even though they have not themselves chosen to enter the marketplace. Never before has Congress purported to use its power over interstate commerce to compel activity, rather than to regulate existing economic activity."

This ruling, which likely strikes down the individual mandate to purchase health insurance as a violation of the Commerce Clause, is significant for several reasons:

• First, this the largest lawsuit that has been filed to date with 25 states joining the legal action initiated by Mr. McCollum.
• Secondly, this lawsuit backs the ruling in December by Judge Henry Hudson of the U.S. District Court for the Eastern District, who also ruled that PPACA is unconstitutional.
• Thirdly, this ruling raises serious questions as to whether the Obama administration can continue to move forward with a blind eye to the legality of PPACA’s fundamental provisions, which would mandate that everyone purchase health insurance coverage or pay a penalty.

Judge Vinson’s comments in relation to the ruling:

"I must reluctantly conclude that Congress exceeded the bounds of its authority in passing the Act with the individual mandate. That is not to say, of course, that Congress is without power to address the problems and Inequities in our health care system."

"Because the individual mandate is unconstitutional and not severable, the entire Act must be declared void. This has been a difficult decision to reach, and I am aware that it will have indeterminable implications. At a time when there is virtually unanimous agreement that health care reform is needed in this country, it is hard to invalidate and strike down a statute titled 'The Patient Protection and Affordable Care Act.' "

If this ruling is upheld on appeal, many of the major provisions of PPACA will need to be redesigned or removed altogether. Further details regarding this ruling can be viewed here.

As more information becomes available, BenefitMall is committed to keeping you up-to-date in a timely manner. Visit www.BenefitMall.com to view past Legislative Alerts in the “Newsroom” section. Or, you may visit www.HealthcareExchange.com for blog posts, polls, surveys and numerous resources. If you have any questions, please contact your local BenefitMall Sales Team and they will be happy to assist you. Thank you for taking the time to read through this important notification.

The views expressed in this legislative alert do not necessarily reflect the official policy, position, or opinions of BenefitMall. This update is provided for informational purposes. Please consult with a licensed accountant or attorney regarding any legal and tax matters discussed herein.